Accessing mortgage redraw: Make your home loan work for you

By the resi financial blog team, 06 September 2013

There are a number of things to consider before taking out your first home loan, especially when you look towards the future of your mortgage.

The financial options you have in the future can greatly be determined by the features and flexibility of your home loan. So it’s important to ensure you have a loan that works for you and your lifestyle.

Once you have your loan set up, one of the best ways to help yourself is to begin making extra repayments on top of your regular mortgage payments. This small amount can help you to get debt free faster, by reducing the amount of interest you'll be paying on your home loan overall.

But an added benefit of making extra repayments could be your eventual access to a redraw facility on your home loan. Basically, a redraw facility allows you to access any extra repayments you've made over the duration of your loan as a source of wealth.

This can come in handy if any unexpected costs come up in your future, affording you a financial safety net to protect yourself from any hardships. For example, any unexpected medical bills, renovations or international travel can easily be supplemented through your redraw facility.

However, it is important to remember that these facilities need to be exercised with caution. Much like a credit card, unchecked use can be disastrous - exercising restraint and level-headedness is the best protection you have against ill-fortune.

Getting in contact with a financial expert can provide you with the right home loan advice for you and your situation, including what the best course of action could be for you and your family's wellbeing.

Speak with a resi loan specialist about the best home loan options for you, and the potential for accessing a redraw facility further into the life of your loan.